RAJASTHAN AUTHORITY FOR ADVANCE RULING GOODS AND SERVICES TAX

BACKGROUND:

The Applicant is the holder of GST Registration No. 08AATFB8617M1ZO and the applicant entered into an Agreement to provide the pure labor Construction Services to M/s BCM BUILDERS LLP.M/S BCM Builders LLP has entered into a contract with Rajasthan Government to construct 380 flats under “Affordable Housing Scheme under Pradhan Mantri Awas Yojna” (including Material and Labor). Henceforth, BCM Builders LLP has entered into sub contract with the Applicant to receive “Pure Labor Services” for the said project. The application has been filed by the applicant seeking whether the entry number 10 of the Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017 is applicable on the services of “Pure Labor” provided by the applicant.

QUESTIONS ON WHICH THE ADVANCE RULING IS SOUGHT:

The applicant seeks advance ruling on the following:

Question: -1 Whether the entry number 10 of the Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017 is applicable on the services of “Pure Labor” provided by the applicant?

Question: -2  If the entry number 10 of the Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017 is not applicable, then what will be classification and HSN for these services of “Pure Labor” provided by the applicant ?

IMPORTANT PARA

On going through the Notification No. 11/2017-Central Tax (Rate) we found that the construction services fall under section 5 of Chapter 99, wherein descriptions of construction service has further been elaborated in items from (i) to (xii). When we go through the description mentioned against item no.(i) to (xi), the nature of work do not found place in item no. (1) to (xi). As such, it shall fall under the residuary sub-head i.e. (xii) attracting GST at the rate of 18%. Hence, we hold that the service provided by the taxpayer fall under HSN code 9954 (xii) with GST rate 18%.

RULING

Question 1: Whether the entry number 10 of the Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017 is applicable on the services of “Pure Labor” provided by the applicant?

ANSWER: No, as discussed above.

Question 2: If the entry number 10 of the Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017 is not applicable, then what will be classification and HSN for these services of “Pure Labor” provided by the applicant?

ANSWER: As discussed above, Labour service provide by the taxpayer fall under HSN code 9954 attracting GST rate of 18%.